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Entrepreneurs and Small Business Owners Can Use Acquisitions to Double or Triple Their Customer Base Overnight
Business Growth Strategies
What many business owners don’t realize is that it can be cheaper as well faster to go with the acquisitions growth strategy. To illustrate this, let’s take a look at cases where this was capitalized on from the recent past. Specifically, let’s look at businesses which utilized subscriber revenue models such as cable-TV and Internet service providers. If you owned a small system in either industry, you were faced with a choice of growth through marketing or acquisitions. Now suppose that you had set as your goal a doubling of your subscriber base in five year’s time. We will assume that this target is extrapolated from your growth rates over the last three years. An analysis of your customer acquisition costs needed to double your sales over three years may show that a marketing based strategy’s costs will exceed those of an acquisition strategy. Morever, the acquisitions route will achieve your goal by doubling the subscriber base as soon as the deal is finalized.
Business Growth via Acquisitions
Back in the 1990s, there was a great deal of M&A activity in the printing industry. One large printer embarked on an acquisitions strategy to expand the market for its three core services: document scanning, fast high-volume printing, and distribution of legal documents, such as proxy statements and collections letters. As a result, the company focused on acquiring small printers which offered only one of these three services. After the acquisition, the absorbed company would be able to offer its customers the expanded range of services made possible by the acquirer. This, in turn, enabled them to win over larger local accounts that they could not have otherwise serviced before.
This is a typical example of what drives a company to employ an acquisitions strategy.
The Tycoon Playbook covers the details of designing a successful M&A strategy for small businesses and entrepreneurial companies.
There is no leadership without courage: Narayana Murthy
Are leaders born or made? I have the answer! Baron A Rohbock
Baron graduated with honors in Business Administration and Leadership. With a passion for training and working with teams, he entered the Learning and Development field as Director of Training for Taylor Hartman, author of The People Code (previously published as The Color Code).
With a wide breadth of knowledge in leadership, Baron returned to the training industry to combine first hand management and executive leadership experience with a passion for working with people to shape results while revealing individual and collective talent. In 2011 he started Core MotivAction, an innovative brilliant training company dedicated to people and team development.
When life throws you a curve-ball… David Ecker
When life throws you a curve-ball, either you have to duck, or learn to hit curve balls
David Ecker is a Stony Brook graduate who previously served as the Interim Director/Manager of Client Support for over 10 years and led the Project 50 Managed Output initiative. He focuses on strategic planning, partnering with researchers and developing best practices for the research community.
Dick Ruhe | Leadership Speaker
Dr. Dick Ruhe is a cherished motivational speaker, as well as a celebrated corporate consultant and trainer. Throughout his highly spirited presentations on productivity improvement, change, and customer loyalty, Dick insightfully connects with attendees’
core issues and inspires a deep desire for success. Based on his extensive management and supervisory experience in the private and public sectors, Dick shares a myriad of amusing stories that absorb audiences and create an unforgettable experience.
As a senior consulting partner for The Ken Blanchard Companies®, Dick Ruhe is the author of the training program Total Quality Leadership. He has also worked with Tom Peters, Gordon Lippit, and Paul Hersey. Dick has served as a regular columnist for Sales and Marketing magazine and has been published in Training and Development, Western Business Systems Journal, Proceedings of the Academy of Management, and Executive Excellence.
A past chapter president of Sales and Marketing Executives, Dick Ruhe is a member of the International Customer Service Association, the National Speakers Association, the International Platform Association, the American Society for Training and Development, and the American Society of Quality Control.
Dick Ruhe received his MBA from the University of New Haven and his doctorate in human resource development from George Washington University. He is the author of Getting Major Results, a field book for change and leadership.